RRG Retirements: Is Your Liability Insurer There When You Need Them?
In the September issue of Risk Retention Reporter (subscription required), it was noted that almost half (46.9 percent) of the 452 risk retention groups (RRGs) that formed since 1986 have retired. Most have dissolved voluntarily, due to difficulties remaining viable in changing market conditions. The RRR also noted that most of the retirements occur during the first 5 years of an RRG’s operation. These are important observations to consider, given that medical liability claims can take years to discover, report and resolve.
Based on our experience, that process takes approximately 5.8 years, on average. Accordingly, it’s important to know how experienced your liability insurer is and how sound they are financially – so that they can be there for you when you need them most.